OREANDA-NEWS. November 21, 2007. JSC Concern "KALINA," one of Russia’s largest perfumery and cosmetics producers, has announced its consolidated IFRS financial results for nine months 2007.

Sales and operating profit of the Company for 9m2007 accounted for US$ 269,663 thousands and US$ 28,042 thousand respectively, an increase of 9.0% in sales and 20.3% in operating profit over the same period of 2006.

Key figures from the Company’s consolidated financial statements for 9m2007 compared to 9m2006 are given below. The Company’s full IFRS consolidated financial report is available on the Company's web-site at www.kalina.org.

The increase in the Company’s sales is due to the growth of the perfumery and cosmetics markets in the Company’s core countries (primary Russia and Germany) and improvement in our product mix, including an increase in share of brand name products in product mix. In October
2006 the Company ceased production and sales of the Omsk detergent plant products. The growth of the Company’s sales in 9m2007 was 15% compared to sales in 9m2006 net of detergents.

Discontinuance of the Omsk plant low-margin products sales led to increase in the Company’sconsolidated gross margin from 44.2% in 9m2006 to 49% in 9m2007.In addition to nine months 2007 data fundamental figures from the Company’s consolidated financial statements for 3rd quarter 2007 compared to 3rd quarter 2006 are given below.

The Company continues to hold a leading position in the national cosmetic market due to the popularity of its brands, strong marketing initiatives and the high quality of its products. Kalina has one of the largest and most effective distribution networks on the Russian consumer market with 278 dealers, including 216 in Russia, 30 in Ukraine and 32 in other CIS countries. The Company’s products are sold at over 82,205 retail outlets in over 223 cities and towns of Russia
and the CIS countries.

For details click here - http://www.kalina.org/etc/kalina-press_release_ifrs_9m2007_eng.pdf